EU to Introduce EUR 3 Duty on Low-Value E-Commerce Parcels

After announcing the removal of the EUR 150 threshold, the European Commission once again addressed the matter by declaring support for EU countries to introduce a flat EUR 3 customs duty on low-value e-commerce parcels, effective from July 2026, to tackle the growing imbalance between online imports and traditional retail.

Main Reasons and Purpose of Regulatory Changes

Due to the increased number of small parcels entering the EU, existing customs rules have struggled to ensure fair competition and effective oversight. Therefore, the European Commission and the EU countries determined that it is necessary to implement a temporary measure until the EU Customs Data Hub becomes operational in 2028, as part of the broader customs reform.

The solution all stakeholders agreed on was to impose a temporary EUR 3 customs duty per item on low-value parcels sent directly to EU consumers from third countries. Notably, the customs duty is distinct from the separate discussions on a potential EU handling fee for e-commerce parcels, which is intended to offset the rising administrative and supervisory costs faced by customs authorities due to the sheer volume of shipments.

The primary purpose of the newly adopted customs duty is to protect the EU businesses and to remove the current competitive advantage enjoyed by certain e-commerce companies. On the other hand, the broader customs reform seeks to strengthen the EU Customs Union, safeguard EU retailers and workers, and enhance consumer protection by ensuring fairer competition between EU businesses and non-EU online platforms.

Conclusion

With new rules in place and the upcoming reform of customs rules, the EU confirmed its dedication to modernising the management of trade at its external borders and to completing the most far-reaching customs reform since the establishment of the Customs Union in 1968. The decision to introduce EUR 3 customs duties on small parcels entering the EU is a critical step toward ensuring fair competition and effective border control and organization in the modern e-commerce landscape.

Source: European Commission, VATabout